Lecture M: Marketing (4/e) - Chapter 9: Segmentation, targeting, and positioning

Chapter 9: Segmentation, targeting, and positioning. After reading this chapter, you should be able to: Outline the different methods of segmenting a market; describe how firms determine whether a segment is attractive and therefore worth pursuing; articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing; determine the value proposition.

segmenting a market.

segment is attractive and therefore worth pursuing.

strategies: undifferentiated, differentiated, concentrated, or micromarketing.

Segmentation, Targeting, 

Positioning Process

Step 1 • Strategy or Objectives

Step 2 • Segmentation Methods

Step 3 • Evaluate Segment Attractiveness

Step 4 • Select Target Market

Step 5 • Identify and Develop Positioning Strategy

Segmentation

Targeting

Positioning

Step 1: Establish Overall  Strategy or Objectives

and current state

Step 2: Segmentation Methods

Africa Within U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast

Geographic Segmentation

©Benetton Group SPA; Photo by: Oliviero Toscani

©image100/PunchStock

©image100/PunchStock Michael Hevesy/Photodisc/Getty Images

Behavioral Segmentation

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check yourself

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methods?

Step 3: Evaluate Segment 

Attractiveness

• Who is in their market?

• Are the segments unique?

• Does each segment require a unique marketing mix?

Substantial

insignificant

need it’s own store

©Digital Vision/PunchStock

Responsive

Customers must:

Step 4: Selecting a Target Market

niche magazines focused on

different aspects of life

©M Hruby

Segmentation Strategy

Step 5: Develop Positioning Strategy

Photo by Tiffany Rose/WireImage/Getty Images

Positioning Steps

Perceptual Maps

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Benefit segmentation groups consumers on the

basis of the benefits they derive from products or

services

Glossary

Demographic segmentation groups consumers

according to easily measured, objective

characteristics such as age, gender, income, and

education

Glossary

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Geodemographic segmentation uses a

combination of geographic, demographic, and

lifestyle characteristics to classify consumers

Glossary

Geographic segmentation organizes customers

into groups on the basis of where they live

Glossary

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Behavioral segmentation divides customers into

groups based on how they use the product or

service

Glossary

Psychographic segmentation, or

psychographics, allows people to describe

themselves using characteristics that help them

choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices

Glossary

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The Value and Lifestyle Survey (VALS) is a

psychographic tool that classifies consumers into

eight categories based on their answers to a

questionnaire

Glossary